Hyundai Motor Affiliates Drop on Tax Investigation
Affiliates of South Korea's biggest automaker Hyundai Motor fell on Monday after local authorities launched an investigation into suspected tax evasion.
Car parts maker Hyundai Autonet fell to its lowest level since October 2005 after Hyundai Motor announced the tax probe on Saturday, dealing the latest setback to the auto making group after its chairman Chung Mong Koo was handed a three-year prison sentence in February.
The probe also involves car shipping affiliate Glovis and unlisted construction affiliate Amco.
Shares in Hyundai Motor and its affiliates have dropped as the auto maker has been facing sluggish sales and has had to deal with the impact of a stronger South Korean won on its earnings.